# Marston’s PLC Sells off 137 Pubs to Amiral Taverns for £44.9m

- Link: https://www.directorstalkinterviews.com/marstons-plc-sells-off-137-pubs-to-amiral-taverns-for-44-9m/412797082
- Published: 2019-11-04T07:39:38+00:00
- Author: Giles Arbor

**Marston’s PLC** (LON: MARS) has announced it has reached agreement for the disposal
of 137 pubs for £44.9 million to Admiral Taverns. This disposal is in line with 
Marston’s plans to reduce its debt in part through the disposal of certain non-core
assets. The assets being disposed of are smaller wet-led leased, tenanted and franchised
pubs. The deal is expected to complete before the end of November.

The pubs being disposed of contributed EBITDA of £4.8 million and operating profit
of £3.7 million for the year to 28 September 2019. The pubs have a book value of
£62.6 million. The disposal will result in average profit per pub in the retained
estate increasing by around 7% and return on capital improving by 0.2% post the 
transaction.

> **Commenting, Ralph Findlay, Marstons Chief Executive Officer, said:**
> “We are making good progress with our plans to reduce our net debt by £200 million
> by 2023 in part through the disposal of non-core assets. We are encouraged by 
> the level of market interest that this portfolio of pubs has attracted. This further
> underpins our confidence in achieving the accelerated £70 million disposal proceeds
> target that we have set ourselves for the current year. We remain focused on our
> stated objective of reducing our net debt by £200 million by 2023 or earlier, 
> and thereafter operating a high quality business generating consistent net cashflow,
> after dividends, of at least £50 million per annum.”

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